Callie Gagnard April 19, 2010 In the article “US Cannot Afford Another ‘Lost Decade’ For Unemployment” the author discusses how the unemployment rate of the United States is affecting the recession of our country. The problems that are taking place in the labor market emerge to be structural rather than cyclical. Therefore it is predicted that it may be several years before the unemployment rates return to a healthy percentage. In order to begin the recovery of our economy more jobs need to be created. Although it is predicted that the United States economy will have a positive GDP growth, the unemployment rate is going to continue to rise. They are forecasting that the unemployment rate will reach its peak of 11% in the year 2010. Once the creation of jobs takes place and the economy recovers, they are guessing that the unemployment rate will gradually start to decrease beginning in the year 2011. As far as recovery goes, if the employment levels and wages do not

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Unformatted text preview: increase then the asset markets are unlikely to recover. They believe that the real estate market will take the hardest hit from this “Lost Decade.” Several propositions come into effect because of the United States deprived labor market. One of them being that the United States is likely to remain reserved and continue to experience deflation for the next couple of years. Also, consumer spending is not expected to return to its previous highs because of reduced income. The nation will see a continuing increase in the personal saving rate as well. Furthermore, the government is going to be pressured into raising tax revenues whenever the initiated tax cuts of the Bush presidency terminate. With our newly elected president, Barack Obama, we may start seeing a shift toward greater economic populism. If employment rates do not improve additional measures may be taken into consideration....
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